IUA data shows strong growth in London company treaty business

Treaty reinsurance written in the London company market grew by almost one-third in 2023, new figures from the International Underwriting Association (IUA) have revealed. The sector generated premiums of £10.889 billion, up from £8.248 billion in 2022. 

This year’s London Company Market Statistics Report is due to be published later this month, analysing all premium income for IUA members by placement type, class of business and geographical origin. An advance preview of reinsurance data, revealed at the Monte Carlo Rendez-Vous, shows significant growth.

The total for direct and facultative contracts written by companies in London was £32.106 billion in 2023, an increase of 9 percent on the previous year (£29.378 billion). Treaty business, however, expanded at a much faster pace and now accounts for 25 percent of the overall market figure. This is the highest proportion for treaty recorded since the IUA began collecting data in 2010.

The IUA’s research measures premium income written in overseas or regional UK offices, but subject to oversight and management by London company market operations. For this “controlled business” direct and facultative placements were also up 9 percent from £4.455 billion to £4.850 billion. Treaties here fell from £1.990 billion to £0.587 billion in 2023. However, the overall London company market total for treaty business was still up by more than £1.2 billion or 12 percent from £9.238 billion to £11.476 billion in 2023.

“Companies are reporting further selected growth where they have made significant underwriting investments.”

Scott Farley, IUA director of communications, said: “Strong growth has been a dominant feature of recent editions of the London Company Market Statistics Report and the theme continues this year. Many different classes of business continue to benefit from a strong pricing environment.

“While indexation of premium due to increases in insured asset values is clearly important, companies are reporting further selected growth where they have made significant underwriting investments.”

The 2023 £10.889 billion aggregate total for treaty business written by London companies represents a tripling of the market’s size since 2010. The first edition of the IUA’s annual statistics survey showed treaty contracts worth an overall £3.216 billion. 

The 2024 London Company Market Statistics Report will be released on September 16. In addition to further detailed breakdowns of premium, it will include a comparison of the sector with the Lloyd’s Market and a market commentary compiled from feedback submitted by contributing firms.

For more news from the Rendez-Vous de Septembre (RVS) click here.

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